Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safety, and Operating Leverage Belmain Co. expects to maintain the same inventories at the end of 2017 as at the beginning of the year. The total of all production costs for the years therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: Estimated Fixed Cost Estimated Variable Cost (per unit sold) Production costs: Direct materials Direct labor Factory overhead $183,700 Selling expenses: Sales salaries and commissions Advertising 39,200 13,300 2,900 3,200 Travel Miscellaneous selling expense Administrative expenses: Omice and officers' salaries Supplies 38,300 4,700 Miscellaneous administrative expense 4 540 Total $ 294,840 It is expected that G, 240 units will be sold at a price of $150 a unit. Maximum sales within the relevant range are 8,000 units Miscellaneous administrative expense Total 4,540 $294,840 It is expected that 6,240 units will be sold at a price of $180 a unit. Maximum sales within the relevant range are 8,000 units. Required: 1. Prepare an estimated income statement for 2017 Belmain Co. Estimated Income Statement For the Year Ended December 31, 2017 Cost of goods sold Total cost of goods sold Gross profit Expenses: Selling expenses Total selling expenses Arministratie Total cost of goods sold Gross profit Expenses: Selling expenses: Total selling expenses Administrative expenses: Total administrative expenses Total expenses Operating income 2. What is the expected contribution margin ratio? Round % 3. Determine the break-even sales in units and dollars. Total administrative expenses Total expenses Operating income 2. What is the expected contribution margin ratio? Round to the nearest whole percent. % 3. Determine the break-even sales in units and dollars. dollars. Units units Dollars 4. Construct a cost-volume-profit chart on your own paper. What is the break-even sales? $ 5. What is the expected margin of safety in dollars and as a percentage of sales? Dollars: Percentage: (Round to the nearest whole percent.) 6. Determine the operating leverage. Round to one decimal place